The annual Jackson Hole gathering of leading Fed officials, international central bankers, and academics, always provides a snapshot of high profile thought on policy. And this year’s was no different. Below are my five key observations from the event:
1. Running Out of Room for Cuts and the Drop in r*
a. Fed Chair Powell noted that the pre-2008 era was characterized by ‘long expansions supported by better monetary policy inevitably lead[ing] to destabilizing financial excesses’. The current (post-crisis) era’s question is ‘how best to promote sustained prosperity in a world of slow global growth, low inflation, and low interest rates’…
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.